Payment protection industry pundits have slammed lenders for hijacking the industry and giving it a bad name.Providers say the PPI industry has been taken over by big lenders and high street retail banks, and they predict the mortgage payment protection industry is in for the same fate if lenders aren’t stopped. Shane Craig, managing director of Paymentcare, says: “The recent report from the Office of Fair Trading confirms what brokers and advisers know about PPI – that it is a product that has been hijacked by lenders to generate huge profits.” The report found distribution is largely controlled by lenders and high street retail banks and prices for PPI differ greatly. It stated this cannot be accounted for by differences in quality. Chris Traynor, managing director of Paymentshield, says: “Lenders typically charge more for MPPI than intermediary suppliers, and for customers to get the best value for money lenders must think about how to price their products. They are taking too much margin.” Sue Anderson, spokeswoman for the Council of Mortgage Lenders, says: “MPPI is regarded more positively than the general PPI market in both the OFT interim report and the Financial Services Authority’s thematic work. “Indeed, the FSA gave prime MPPI a relatively clean bill of health in terms of how it was being sold by lenders. Lenders and insurers are continuing to work to improve the quality and value of the products offered to customers. She adds: “On MPPI, we have been reviewing the baseline specification and expect to make some modest but positive changes. It is wrong to see MPPI as the same as PPI.”
The Financial Services Authority has fined The Ancient Order of Foresters Friendly Society 55,000 for financial promotions failings, including substandard television advertisements and direct offer packs which targeted elderly consumers. This is the first time the FSA has fined a friendly society for financial promotions failings. The FSA imposed the fine because Foresters failed to […]
Enterprise Group has made four key appointments to its senior management team. Liam Dixon, Simon Jacobs and Jorge Monte have been appointed as service quality managers, with Marie Hughes appointed as head of underwriting.
Skipton has launched a 10-year fixed rate mortgage at 5.29% for loans up to 75% LTV and 5.39% for loans up to 95% LTV.
With Cypriot authorities clamping down on loud music and typical 18-30s antics, Ayia Napa is fast becoming an upmarket holiday destination and a serious hotspot for property investors, says Assetz. Nightclubs and bars playing loud music very late at night are now closed down immediately and their music equipment is confiscated, in a drive to […]
Dividends are under pressure in some areas: but reliable yields can still be found. So says Adrian Frost, manager of the Artemis Income Fund, in conversation with Lawrence Gosling.
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